The generic existence of competitive equilibria when the asset market is incomplete extends to economies with restricted participation.

We consider a general equilibrium model with incomplete financial markets and nominal assets. Asset prices are given. Let D be the number of "missing" assets. If the number of agents is greater than 2(D+ 1) and the number of period zero commodities greater than (2D + 1), there is a dense,...

Individuals exchange contracts for the deliveryof commodities in competitive markets and, simultaneously, act strategically; actions affect utilities across individuals directlyor through the payoffs of contracts. This encompasses economies with asymmetric information. Nash-Walras equilibria...

It is well known that a competititve equilibrium may fail to exist when preferences are possibly satiated. We show that this non-existence problem does not arise if one of the commodities is paper money. Moreover, an equilibrium is Pareto efficient in the economy with money. This paper therefore...

Extrinsic uncertainty is effective at a competitive equilibrium. This is generic if spot markets are inoperative: the only objects of exchange are assets for the contingent delivery of commodities; and the asset market is incomplete. The structure of payoffs of assets may allow for non-trivial...

Competitive equilibrium allocations are indeterminate when the net trades in commodities are constrained, while the asset market is incomplete.

Markets are incomplete when the assets available to the agents do not span the space of future contingencies. Efficiency is then assessed by the weak criterion of "constrained efficiency" (efficiency relative to the set of allocations compatible with the asset structure). That criterion requires...

For an overlapping generations economy with varying life-cycle productivity, non-stationary endowments, continuous time starting at _∞ (hence allowing for full anticipation), constant-returns-to-scale production and CES utility we fully characterise equilibria where output is higher than...

The main result is that the golden rule equilibrium (GRE) is Pareto optimal (in the classical sense) in an overlapping generations (OG) model with constant-returns-to-scale production, transfers, arbitrary life-time productivity and CES instantaneous felicity. In addition, we extend Cass and...

In an exogenous-growth economy with overlapping generations (OG) we analyse local stability of the balanced growth equilibria with respect to perturbations of consumption endowments, thought of as the "monetised" value of a government policy to individuals. We show that perturbed economies have...